KUALA LUMPUR: Leon Fuat Bhd is making its move towards having sustainable energy powering production operations through an investment in solar panels.
The company is involved primarily in trading, processing and manufacturing of steel products.
In a statement today, Leon Fuat said a total of RM5.26 million is being invested for solar panels as part of its sustainability initiatives.
These panels will be gradually installed in stages depending on the readiness of project sites.
"We see this move as a good investment for the environment in the long run to reducing CO2 emissions as we are using renewable solar energy and it will also lower the cost of energy consumption.
"This initiative will help us in our energy management initiatives and solar power is environmentally sustainable as well as effective," Leon Fuat group managing director Ooi Seng Khong said in a statement today.
Ooi said the installation of solar photovoltaic panels will have a capacity of 2.1 million kilowatt hour (kWh) per year.
"We expect to save an estimate of 30 per cent savings in electricity consumption per year when the solar panels are fully completed," he added.
The company said three of the its subsidiaries involved in steel processing consumed a total of 4.9 million kWh of electricity in 2020, which is a 37.1 per cent increase from 2019.
"We will continue to build organisational capacity to adapt to a sustainable future while focusing on the strategy to improve productivity through sustainable practices and bring value to our stakeholders," Ooi said.